SOURCE: Hunt Gold Corporation

November 25, 2008 12:59 ET

Hunt Gold Corporation -- Update on JV Stock Purchases

Company Update and Rationale on JV Purchases of Its Own Shares of Common Stock in the Market

NEW YORK, NY--(Marketwire - November 25, 2008) - Hunt Gold Corporation (PINKSHEETS: HGLC) announced that it had formed a Joint Venture with a small but very active Mining Fund to purchase shares of this Company's shares of Common Stock in the market.

RATIONALE FOR THE JOINT VENTURE STOCK PURCHASES:

The Company's stock price is at this time significantly undervalued and the Management of your Company is of the opinion that given the extremely positive developments and immediate implementation of the Company's strategy, coupled with the Company's strength growing at a rapid rate fuelled by both rapidly rising Gold prices and aggressive exploration by the Company; the stock price will correct itself in the fairly short to medium term.

The Company has watched 70% of its market capitalization disappear over the past few weeks based upon endless selling of your Company's stock by forced Sellers; it presents a significant opportunity for the Company to make short to medium term investment profits which will serve to increase your Company's cash reserves over the short to medium time based upon these investment profits.

JOINT VENTURE COMPANY INVESTMENT STRATEGY:

The Joint Venture will utilize surplus cash to purchase shares of its Common Stock in the market as an Investment. These shares so purchased will be held in Treasury and will not be cancelled.

The Joint Venture intends to sell these shares in the market and what Management believes will be at a substantial profit; and at such time as the Company's stock price corrects itself to more reasonable and accurate prices; these being considerably higher than at present.

The Joint Venture is not purchasing these shares of its Common Stock in the market to increase the Company's stock price; this is a short to medium term investment as far as the Company and its Mining Fund Partner are concerned. Management wishes to stress that it will not be cancelling these shares of its Common Stock purchased in the market and intends to purchase shares of the Company's Common Stock as an investment, and solely based upon the prevailing weak and undervalued share price of the Company's shares of Common Stock. At no time does this Company intend to state as to what price it is prepared to pay for its shares in the market; nor at what price it will take profits on these purchases of its own shares.

This is considered to be a fairly short term opportunity upon which the Joint Venture intends to capitalize upon. The Joint Venture will not disclose the amount of shares which it intends to purchase as this will be wholly dependent upon the price of the Company's shares offered in the market from time to time and at the discretion of the Management of your Company and its Joint Venture Partner.

RATIONALE FOR FORMING THE JOINT VENTURE:

The Company was approached by a small but very active Mining Fund to work with the Company on these stock repurchases. The Company has formed a Joint Venture with this Mining Fund on a 50/50 profit sharing and equity basis to operate and manage these purchases and subsequent sales of the company's stock.

Your Company's Management is of the opinion that this Mining Fund has the necessary expertise in this area; are in a position to obtain maximum leverage and/or Margin for this trading; and are in a position to obtain the lowest brokerage commission rates. These factors will greatly increase the Company's profits from these share purchases and subsequent sales; and most importantly has resulted in a much more significant amount of funds being available for these stock purchases.

CONDITIONS PRECEDENT ON STOCK PURCHASES BY THE JOINT VENTURE:

The Company and the Mining Fund announced that they will commence purchases of your Company's shares of Common Stock through the new Joint Venture at such time as all significant and material facts are disclosed to our stockholders, namely:

--  The Announcement of the details and scope of the Drilling Programme
    and the Announcement of the appointment of the Drilling Contractor; and
--  The Announcement of the confirmation of the drilling to commence this
    year; and
--  The Announcement of the appointment and full details of the Project
    Manager; and
--  The Announcement of the appointment of the Company's new IR Firm and
    their contact information; and
--  The Announcement with full details concerning new Board appointments;
    and
--  The web site with all vital investor information on the Company going
    "live."
    

The only above-mentioned events not yet announced to date, are the Corporate web site for your Company going "live" and the details of your Company's new IR firm; these will be announced jointly on Monday December 1, 2008 and prior to "Market Open" on that date.

As of that date, all stockholders will be in a far better position to decide whether to buy, hold or sell their shares of the Company's Common Stock, prior to the JV purchasing these shares in the market.

Your Company's Management considers it inappropriate for the Joint Venture to purchase shares of your Company's stock ahead of the all facts being made available to our stockholders.

The Joint Venture will immediately commence with its purchases of your Company's shares of Common Stock upon the Corporate web site for your Company going "live" and the details of your Company's new IR firm being announced.

JOINT VENTURE STOCK PURCHASES TO DATE :

The Joint Venture identified a persistent and forced Seller of your Company's stock. The Joint Venture purchased an amount of 156,983,000 shares of your Company's Common Stock from this Seller, and at a price of US$0.00035 per share. This purchase by the Joint Venture was transacted "off the market" to eliminate brokerage costs and to avoid the distortion of the Company's trading volumes.

The Seller was being forced to dispose of these shares due to financial pressures beyond its control and was made fully aware that if it was able to hold these shares of your Company's Common Stock for a period of time, it would achieve a far greater price per share.

DISCLOSURE OF JOINT VENTURE TRANSACTIONS:

The Company undertakes to provide its stockholders with details of its stock purchases on a fortnightly basis, this being on a voluntary basis due to your Company being a "Non Reporting Company" at this time and therefore has no duty to disclose its stock purchases, nor its sales and profits on these stock purchases.

Upon your Company becoming a "Reporting Company" with the SEC, the Company will file the appropriate disclosures.

The Company will provide full details of all its transactions in your Company's stock by the Joint Venture; on the Company's Corporate web site.

GENERAL NOTES:

The Company remains fairly confident that it will be in a position to accumulate substantial amounts of stock at the current very low stock price levels as it appears that there are significant sellers at these current price levels; based upon our observations of the past few weeks' trading patterns in the market.

Stockholders are advised that this may not be case and these Sellers may well have exhausted their stockholdings in your Company very shortly; and in that event, the Joint Venture may very well pay significantly higher prices per share of your Company's Common Stock than the current trading prices of your Company's stock.

The Company will account for these profits as an Extraordinary Item in its Financial Statements.

Your Company is in a financial position to transact these purchases due to significant Loan facilities granted to the Company; these facilities to be replaced by an initial US$5 million obtained through a traditional Bank Mortgage over the Company's "Mockingbird" Gold Project, in January of 2009.

ABOUT HUNT GOLD CORPORATION

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "Gladstone Lookout," "Lady Alde," "Lookout Silver," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal." The Company has completed the sale of its "American Molygold" interests and will be distributing the entire sale proceeds through a Stock Dividend to its stockholders, this to be announced shortly.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward- looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • For further information contact:

    Hunt Gold Corporation
    E Mail: Email Contact
    Telephone: (954) 840-6956
    Contact: Mr. Michael G Saner